Skip to main content

About this Show

Special Report With Bret Baier

News/Business. Bret Baier. (2011) New.

NETWORK

DURATION
01:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Port 50003

VIDEO CODEC
mpeg2video

AUDIO CODEC
mp2

PIXEL WIDTH
720

PIXEL HEIGHT
480

TOPIC FREQUENCY

Boehner 36, Washington 8, John Boehner 6, America 5, Reid 5, Harry Reid 4, U.s. 4, Bret 4, Us 3, Diabetes 3, Geico 3, Jasmine 3, United States 2, Carl 2, South Carolina 2, Massachusetts 2, David Drucker 2, Obama 2, Steve Hayes 2, Steve 2,
Borrow a DVD
of this show
  FOX News    Special Report With Bret Baier    News/Business. Bret  
   Baier.  (2011) New.  

    July 29, 2011
    3:00 - 4:00pm PDT  

3:00pm
weekend. this is "the five." catc us next week, good stuff, about the debt ceiling. >> no. it will be done by then. >> and keep the emails coming at thefive@foxnews.com. >> good evening. i'm bret baier. this is a fox news alert, saying we're almost out of time president obama today urged lawmakers to achieve a bipartisan extension of the debt limit, which the treasury secretary says will be reached tuesday. house speaker john boehner's third version of a bill to do just that awaits a vote in a matter of moments. all of this happens against the backdrop of new numbers account inning the gross domestic product numbers were much worse. we look at how those numbers may affect the president, but we begin with mike emanuel on the
3:01pm
debt ceiling vote. >> moments ago speaker john boehner passionately rallied his republican members on the floor of the house. it's been a challenging week for the speaker as the debt plan has been delayed several times and adjusted. after the vote, in a matter of minutes, the pressure will shift to the senate, and the search for compromise. after fine-tuning his debt plan again to include a balanced budget amendment to secure enough republican votes to pass, speaker john boehner made his final pitch. >> i stuck my neck out a mile to try to get an agreement with the president of the united states -- i stuck my neck out a mile -- and it is time for the administration and time for our colleagues across the aisle, put something on the table! tell us where you are! [applause] >> house democrats were angered by the addition of the balanced budget provision and expressed their frustration. >> in the last 24 hours, we've confirmed what many people suspected, which is that the tea
3:02pm
party republicans may be a noisy and effective protest movement, but they're unfit to govern. >> meanwhile in the senate, democratic leader harry reid promised to kill the boehner bill, but recognized time is short. >> default is not an option either, but we cannot wait for the house any longer. >> so reid pledged to work with nat republicans on a compromise with a procedural vote tonight, leading to possible votes before dawn on sunday morning. >> the last train is leaving the station. this is our last chance to avert a default. the vote on this compromise will determine whether we enter the frightening world of default. >> massachusetts republican senator scott brown told reporters "i'll vote for boehner and vote for reid, it's time to move our country forward." but earlier senate republican leader mitch mcconnell said -- >> we'd be voting to end this
3:03pm
crisis today. >> in the senate, members i've spoken with today are talking to one another about compromise. they recognize the time for argument is running out. bret? >> bret: we'll check back in a bit. we're hearing 6:10 for a final vote start. we'll cover it live here. while the debt numbers are a media trouble for the president, chief white house correspondent ed henry reports the new economic numbers could mean long-term difficulty. good evening, ed. >> good evening, bret. the president dealing with extremely high unemployment numbers. you pile on more bad statistics today, and it's no wonder one of the president's top aides today said that this economy is literally hang nothing the balance. on a day his re-election effort was dealt a blow with news the economy grew at a weaker-than-expected 1.3%, the president ramped up pressure on congress to seal a debt ceiling. >> we could lose our aaa credit
3:04pm
rating. not because we don't have the capacity to pay our bills, but because we didn't have a aaa political system to match our aaa credit rating. >> with analysts saying that vaunted status may be lost even if a deal is reached, because the country has so much red ink. >> make a phone call, send and email, tweet. keep the pressure on washington. >> even the president sent a tweet with the initials "bo" declaring the time for putting party first is over. if you want to see a bipartisan compromise, let congress know. but agency spoke of bipartisanship his campaign followed
3:05pm
>> jo joe manchin is a swing vo. >> we aren't having these conversations. you know, i'm sure they will know why the president spent his day on doubling the fuel economy for vehicles between now and 2025. >> instead democrats this congress are still talking about block a solution to the crisis, and the president is rolling out new mileage standards. >> the president has another aides says he still plans goes to chicago for a fundraiser tied to his 50th birthday. the president fully aware this could go off the rails.
3:06pm
high stakes poker game right now, bret. >> bret: you mentioned the president's tweet offensive. there was a little pushback in the twitter verse about that, wasn't there? >> when you count the number of twitter. he seems to have lost a few thousand of them, people complaining that their feed was clogged up. they say they're not about to stop using the social media. it was effective for the president in the 2008 campaign. they think in the long run it will be effective in a big debate like this. bret? >> bret: ed, thank you. stocks were again down today to close what was the worst week in a year. the dow dropped 97, the s&p 500 gave back 8 1/3, the nasdaq dropped 10. fuel to the fire in the debt ceiling debate. peter barnes breaks down the number. >> high gas prices and weak income gains for workers have the economy growing at its
3:07pm
slowest six-month pace since the economic recovery began early last year. the government said today that gdp grew at just a 1.3% annual rate in the second quarter, well below expectations. but the shocker was a huge downward revision of the number for the first quarter. growth originally clocked in at 1.9%, but now the government says it grew at just .4 of a president. for the president, the numbers were too bad to ignore, even as he pressured republicans to cut a deal with him on the debt ceiling to help the economy. >> on a day when we've been reminded how fragile the economy already is, this is one burden we can lift ourselves. we can end it with a simple vote. >> the administration again blamed one-time shocks for the weak report. >> we do a lot from negative consequences in high energy prices, the tsunami in japan in
3:08pm
those numbers, but we need to continue to take measures to keep our economy to grow. >> whatever the cause, the report sent economists back to their calculators with many pushing their projection foss stronger growth out till the end of the year. >> i can say we've gone from the great recession to the great stagnation. we have a lot of reason to worry. we need all the help we can get from washington. we do not need the current tail mate that adds to uncertainty. >> the current recovery is coming as one of the weakest in 30 years, bad news for a president just 15 months away from election day. it is less than half of the pace of the rebound after the recession of the early reagan years, and running behind the recoveries of bush 41 and early bush 43. >> and today's report could amplify worries about a possible double-dip recession and calls to prevent one with new economic stimulus measures like extending the current cut in payroll taxes.
3:09pm
bret? >> bret: the weak economic numbers raise questions about future oil demand, and that sent crude oil down $1.74. the national average for gasoline is $3.71 a gallon, a penny and a half more than a week ago, and 17 cents higher than a month ago. as you heard in ed henry's piece, president obama today announced new fuel efficiency standards for cars and trucks, doubling to 54 1/2 by 2025, reducing u.s. consumption by 40% and greenhouse gases by harassment the mileage target was lower than environmentalists wanted, but higher than automakers favored. starting the vote in the house. this is on speaker boehner's bill, as you look live in the house, this is the beginning of the vote. after this break, we will continue to monitor this vote tally. keep it here on fox. we have you covered.
3:10pm
you could save a bundle with geico's multi-policy discount. geico, saving people money on more than just car insurance. ♪ geico, saving people money on more than just car insurance.
3:11pm
diabetes testing? what else is new? you get the blood, hope it's enough, it's-- what's this? freestyle lite® blood glucose test strip. sure, i'll try it, but-- [beep] wow. yep, that's the patented freestyle zipwik™ design. it's like it-- [both] targets the blood. yeah, draws it right in. the test starts fast. you need just a third the blood of one touch.® okay. freestyle test strips. i'll take 'em. sure. call or click-- we'll send you strips and a meter, free. can't i just have these? freestyle lite test strips. call or click today.
3:12pm
whose non-stop day starts with back pain... and a choice. take advil no and maybe up to four in a day. or choose aleve and two pills for a day free of pain. way to go, coach. ♪ >> bret: this is the fox news alert. we'll take you live to the house floor where the vote on the final bill, this is the final passage of now the third iteration of speaker boehner's bill to raise the debt ceiling and cut spending. there you see the yay and nay,
3:13pm
193-191. this is a 15-minute vote. we have about 10 minutes left. we'll keep that up as the vote tally continues. let's bring in our panel, steve hayes, karen tum mullti, david drucker, and charles krauthammer. david, you were over there all day. seems to be they'll bring this thing, if they have the votes, and seems he has the votes. what's the inside skinny? >> well, adding a balanced budget component seemed to -- balanced budget amendment added to the new version. >> correct. some of the debt limit increase would be tied passage in congress to the balanced budget amendment. only were calling it cut, cap, balance light. i think the second revised version, all of the wrangling combined, was able to get it done. now, i think everybody knows this is going nowhere in the senate. it will get over there later tonight and die. >> as people are looking at the screen, 214 is the magic number.
3:14pm
now at 200-195. once you get to 200, it's not a done deal. sometimes lawmakers change their votes. the vote changes. but 214 is the magic number tonight. go ahead. sorry. >> that's okay. so they're going to finally get this done, which i think is important for the speaker's leadership, even though in some sense it's viewed as a defeat because of where he started at the beginning of the week and where he ended up, but at least he didn't hold a vote that failed. then it goes to the senate. what happens is actually a very open question. >> bret: karen, thoughts on today? >> i was struck that the speaker be final speech was as passionate as i think i've ever seen him, but there was one line in it where he kept staying, a lot of people in this town can never say yes. he was referring, of course, to the administration and the democrats, but i think that could have applied just as easily to his own caucus. >> right. he was referring, steve, to his negotiations with the president, saying numerous times he stuck his neck out, that he stuck his
3:15pm
neck out, actually put revenues on the table. now, he's saying this to a caucus which is adamantly opposed to any revenue increases, and he knows that he's going to have to take a bill that comes over from the senate, as we're as 204 right now, he'll have to pass that bill through a house that does not want what probably senator reid is going to give them. >> right. i think he's saying this in part as a defense of the house republican caucus who's gotten bludgeoned in the media over the past few days. you know, john boehner has been criticized within his own conference as somebody who is too willing to work on a deal with president obama. i think there are people among the house republicans who thought boehner spent too much time dealing with a man who was fundamentally never going to agree to reform entitlements and do the kind of spending cuts increases.enue so i think boehner was in that sense a little bit defensive of himself and of the process he's been through, but also in a broader sense of his caucus.
3:16pm
>> bret: you and i were talking last night how the numbers were coming together -- we're at 207 yay right now. 214 again is the magic number. behind the scenes what were getting, the arm-twisting. tell us about that. >> yeah. it was an interesting process last night. you talked to some people, two votes, the republicans are two votes short in the house. other people said it's many more than that, it's 5, it's 15. it was a moving target for most of the night. there were times where people didn't have an exact count of the votes, but they understood they didn't have the votes last night. >> bret: which is why they yanked ate you have the floor. 214 now. charles, what does this mean for speaker boehner and his leadership? >> he was playing one or two chess moves ahead of the game. he had no longer had to be
3:17pm
addressing the rerecaltrans. we know the president doesn't have a plan. the senate has in theory a reid plan, but it's not a senate plan. it's really important that the republicans emphasize it's no longer a boehner plan. it's a house of representatives. this is something that passed in one house of the congress. so that's the live action. and i think the idea is to put onus on the senate where nothing has happened. everything is killed in the senate. it's a place where all bills that would solve this go to die. and the white house, where the president even today talking about the second stage of this process on debt ceiling said that the second stage will be discussions on entitlements and tax reform, i'm willing to have a discussion. this man is still back in discussions, which he offered --
3:18pm
estimated. he has nothing in a plan in public. no cuts. nothing. i think if the emphasis is on the house is acted, the senate and the presidency would turn on the hands of democrats, that's a winning argument "o'reilly argument. >> bret: 211 yay, 203nay. it's not official until the gavel comes down. the pr effort, seems the democrats had a successful neither painting the tea party d"t3mvç]8n">lwé+ gone? will this turn that narrative tracking polls go up and down, up and down. but today the president hit 40% approval in the gallup tracking poll, which is the lowest he has
3:19pm
been. the fact is, charles talks about the argument that they have now, i think the country is to point an argument, they want to hear a plan. time has basically run out. >> david, we're at 213, one away from the number they need. your thoughts on this discussion here? >> well, i think the interesting thing is whatever you think about the republicans' plans in the house, they actually passed two bills. and as we've gone down to the wire here, we're bumping up against the tuesday deadline to raise the debt limit, i thought this was a great process if it would have started six to eight week, and you can have had the house pushing through its plans -- don't forget the dead, he went back, tried to come up in something that in theory could appeal to democrats, say at least i dialed it back a little bit. if the senate would have moved, if the house would have after the house, four weeks ago, we would have been in business for
3:20pm
>> bret: currently at passage, 214-204. four minutes left if these numbers hold, and it looks like they will. this will pass the house. charles, your thoughts? >> it would have been much better if the house passed this a month ago, but right now what the republicans can say is the house legislates, the president talks, and the senate kills. who's responsible here? who's acting as an adult? >> bret: it's important to note that any lawmaker could change their votes, but we're at the magic number right now, 214. steve, when you talk about the tea party conservatives, they, you know, strategists will tell you that they have an argument that this linkage between the debt ceiling increase and any spending cuts would not have happened had they not been elected. so any of this concern or talk about this focus on the debt, or reducing the size of government, would not be happening if it was
3:21pm
not for november 2010. >> there's absolutely no question about that. i think they deserve a tremendous amount of credit for changing the conversation. we've heard it in the floor speeches over the last couple of days. law back at january and february of 2009, what washington was focused on how much money can we spend and how fast can we spend it? fast-forward tight january 2011 after the historical change in november of 2010, and because largely of the tea party conservatives, you have changed the conversation, so that the conversation, including the president is, how much can we cut and how quickly can we cut it? i mean, that is a dramatic change. now, that i would argue in tactics, tea party conservatives made a mistake, and they made a mistake by not changing after cut, cap and balance went down, i think it was the bes program d plan to be offered, but they made a mistake by not going to the speaker to say, what can we do to pass the most conservative
3:22pm
plan in the house that could possibly pass the senate? i think john boehner at the same time had made a mistake earlier by spending too much time with the president and not spending enough with those -- that group in the house. >> bret: but karen, because we're pushed up against this deadline that the treasury department says if we miss we go over it, it's a financial calamity, that was a powerful anvil that democrats used, hammering down. >> it was not just the treasury that was saying as well. >> bret: i mean wall street, all kinds. >> exactly. but i do think, yes, the tea party has changed the conversation, but i think that for a lot of those people tonight, changing the conversation does not feel like a victory. certainly we saw people as recently as yesterday sarah palin sending out her facebook posting saying, hang tough, and don't forget there are people out there who are willing to challenge you in a primary. so this is -- this is a pretty purist group of people. >> but there's a paradox here,
3:23pm
because the essence of the philosophy of these new conservatives, the ones who shifted the conversation, is a return to a kind of constitutionalism, and extremely admirable philosophy, meaning smaller government, limited -- less intrusiveness, less regulation, sort of a return to the original idea of america, but the original structure of america is the separation of powers. conservatives -- republicans control one house, only one house, half of one branch. the idea that you could revolutionize america controlling one branch is impossible under a structure under the constitution of limited and separated powers. they have to recognize that. they have scored a tremendous success here. take the money and run. >> bret: this is ticking down now, and it is a victory for speaker boehner. this will pass. we'll listen in now for the final vote total as the seconds tick down. i can't give you the breakdown of how it breaks down. five democrats voted for the
3:24pm
first iteration out of the house, cut, cap and balance. we don't know -- we see that there are no democratic yays right there for this piece of legislation. so they, as a caucus, stuck together, but this vote now passes. and this vehicle with $917 billion in cuts and a $900 billion short-term debt limit increase -- let's listen in. >> the yays are 218, the nay are 210, the bill has passed. the a motion to reconsider is laid upon the table. [gavel pounded] the unfinished business is a question on suspending the rules and passing hr-2213 which the clerk will report by title. >title.
3:25pm
>> bret: that was really exciting, because we at least got the gavel on time, right? i mean, we had the gavel. now they're moving on to other business. the key point now there's this piece of legislation moves over to the senate. and this is where senator reid will try to kill it immediately and possibly use it as a vehicle to send back. it's in the weeds. let's check in with our chief congressional correspondent mike emanuel and chief white house correspondent ed henry at the white house. first to mike. mike, give us the lowdown of the logistics. >> it's been interesting, bret, because senate republicans vern quiet today. they wanted to allow speaker boehner to do his thing. democrats were talking about compromise. it will be interesting to see, because when the boehner plan looked like it might go down, the feeling was that harry reid would have a lot of leverage in the senate. now that the republicans have passed yet another measure and sent it to the senate, does that change the dynamic in terms of the negotiations? senate republicans did not want to talk specifics about the negotiations throughout the
3:26pm
course of the day, because they wanted to keep their focus on the boehner plan, if you will, but we know there have been private conversations about the way forward, and obviously that will continue throughout tonight and over the course of the weekend. bret? >> bret: okay, mike, thank you. before i go to ed on the -- at the white house, there were 20 republican defection on this, 20 no votes. i'm sorry, 22 is the number. if seven of them had gone the other way, this bill would have gone down. so there was basically a seven-vote cushion at least right now. and no democrats voted for this legislation. the significance of the vote. 218, which is the normal number, when you have a full house of representatives and no abs. he clearly had insurance votes, so he could have lost a couple of these and this thing still would have passed. i think the problem he had, just a quick note on last one of the problems he had, people were saying, fine, i'm going to accept something less than what
3:27pm
senate and die. so explain this to me. there's another negotiation to come, because after senator reid and senator mcconnell presumably come up with something that can get back to again. i think today what you saw, all of the members they were working on last night that they needed 1 eqa down our noses from washington, but there are first term council member who are -- first-term congressmen just learning the ways of capitol hill, and we're explain that to me. that's an important part of this. >> this is someplace where speaker boehner deserves a tremendous of credit.
3:28pm
he's had small group tutorials with a lot of the new members going back to the beginning of the term. i mean, he's had them in, either substance of it, with others to talk about the legislative process of it, guiding them through this at sort of every stage of this, so that in the event of something like this, when he makes an argument like the ones he was making to people last night, they're receptive to. they what happened it means in the language of their colleagues, not just the language of their constituents. >> well, i think, just as importantly the leaders themselves are learning that there is a new way on capitol hill, and that the old way, where you could take your legislative deal-making skills into a room and there was enough overlap and common interest that you could come out with some compromise, that doesn't apply anymore. there is less ideological overlap between the democratic party and the republican party than there's been since the 1890s, if you talk to political scientists. it is just harder and harder to
3:29pm
make those old ways of capitol hill work. >> and again a lot of that is because -- >> i was an intern. >> a lot of what's going on, and i spoke to a republican nor yesterday who told me, look, the tea party guys -- which aren't all freshmen -- include some of the veterans. >> right. >> they're not crazy the way some people like to say, but they have no use for politics. politics is deal-making and compromise, the sort of enjoyment you get out of trying to craft a deal. he said they don't care. >> part of the reason this was so sticky, there wasn't pork. can't trade favors anymore. again, more credit to the tea party. >> bret: we'll check in with chief white house correspondent ed henry. that's the will rogers statue in front of the house floor. the question is how much money will come out of your pocket if we miss the debt ceiling
3:30pm
deadline? chief washington correspondent james rose one a look at that after the break. [ male announcer ] this is the network. a network of possibilities.
3:31pm
excuse me? my grandfather was born in this village. [ automated voice speaks foreign language ] [ male announcer ] in here, everyone speaks the same language. ♪ in here, forklifts drive themselves. no, he doesn't have it. yeah, we'll look on that. [ male announcer ] in here, friends leave you messages written in the air. that's it right there. [ male announcer ] it's the at&t network. and what's possible in here is almost impossible to say.
3:32pm
[ slap! slap! slap! slap! slap! ] [ male announcer ] your favorite foods fighting you? fit back fast with tums. calciumich tums goes to work in seconds. nothing works faster. ♪ tum tum tum tum tums nothing works faster. naturals from delicious, real ingredients
3:33pm
with no artificial flavors or preservatives. naturals from purina cat chow. share a better life. excuse me. him? he's helping me get back to normal. hey, i don't even live in a floodplain. but i've got flood insurance, so i'm covered. how's that? nice. flood insurance, it helps make your home a home again. or, your me a me again. ooh, check it out fred, new foundation. got any of those in my size? [ female announcer ] only flood insurance covers floods. for a free brochure, call the number on your screen. >> bret: this is a fox news alert. you're looking live outside the u.s. capitol. our top story, the house just passed speaker boehner's bill that would raise the debt ceiling and make major cuts to spending. final vote, 218-210. no democrats voted for it.
3:34pm
the bill now goes to the senate. let's check in now with chief white house correspondent ed henry out on the north lawn. next steps, rex from the white house if there is any early, and what is next? >> well, bret, i think the fact, this is a case of basically a no comment, saying it all in the sense that i just spoke to some white house aides who said, look, we're not planning to put out a dramatic statement, not planning to put the president out there, because they frankly think the boehner bill is going nowhere fast. they could be wrong about that, but they believe the votes aren't there in the senate. if senate majority leader harry reid wants wants to bring it up, they can kill it. they say this has been a fruitless exercise, because a week or so ago, speaker boehner, give me time, let conservatives vote on something they wanted, they'd move on to a bipartisan compromise. instead they've gone to a second piece of legislation that's passed, that's white house believes will go nowhere.
3:35pm
now, obviously the mirror argument from the republicans on the hill is that it's not been a waste of time, that these are now two pieces of legislation that have gone through one chamber, more than that the senate has been able to do, and one of the two bills should be the vehicle to begin bipartisan negotiations. i think what's next is the white house is now intentionally focused on trying to bring along some moderate republicans in the senate around some combination of the boehner and reid bills. early word from democratic officials there's they think they're getting some positive public comments, maybe even private conversations, among republicans like lisa murkowski of alaska, as well as scott brown of massachusetts. today he said publicly he could vote for either the boehner or reid bills. basically inside the white house they believe, look, the spending cuts between the two bills, not too far off. both want a special committee of congress to come back in a few months and have more cuts. the big sticking point what's the enforcement mechanism, the so-called trigger to hold
3:36pm
congress accountable to make sure a few months from now the spending cuts are real, not more washington talk. >> bret: exactly, that's the sticking point, the trigger. ed, thank you very much. this is a look at the capitol, on the off chance we'll see lawmakers that may want to stop by, or the speaker. karl cameron has reaction. carl, there's been firm stances from some of the candidates out on the trail. >> yeah. if you got to give anybody bachmann. it's rare that candidates from the u.s. presidency from the house get a lot of attention. inlllly fact, there hasn't anye member elected as president since garfield. having that ed, michele bachmann has been very, very loud in raising the opposition to the debt ceiling, and been one of the tea party republicans, although not a freshman, that's been a pain in the neck for speaker boehner in resisting all
3:37pm
of this, and aggressive in doing so. the rest of the presidential candidates have largely disagreed and opposed raising the deb debt limit, but not as d as about. mitt romney is actually promoting himself as someone who has the business savvy and know-how to right the country's economy, and put hi its fiscal budget in order. only jon huntsman has come out and said there needs to be a deal, embracing things that haven't been embraced by conservative republicans. they're all reluctant to take leadership and advocacy on this, with the compensation of bachmann. the speaker has had close calls putting the votes together, and presidential candidates don't want to be held responsible for that. >> bret: in fact, some of them have stayed away from the whole issue. mitt romney hasn't weighed n has he? >> he says he supports what boehner is doing, but refuses to take a position on the latest
3:38pm
boehner compromise. romney, the rest of the field, really did sort of support the original cut, cap and balance proposal, but it's since been modified so many times over that it's almost as though they're punting on the attempts to keep up with the various different -- variations coming out. for romney particularly, he's been absent, and criticized for not taking a position as loud as he might. >> bret: okay, carl, thank you. just a few days away from heading to ames, iowa, for our next debate, and the straw poll. very interesting. the bottom line on this debt ceiling extension, what's it going to cost me? what's it going to cost you if a deal is not done in time? chief washington correspondent james loan rosen is here with se answers. >> this morning president obama made the connection between the debt battle playing out in washington and debt to me. >> a lower credit rating would result potentially in a tax increase on everyone in the form of higher rates on their
3:39pm
mortgages, car loans, their credit cards, and that's inexcusable. >> translate that from beltway-jeezese. if that happens, the treasury department would swiftly raise the yelled on its bond offerings by a half a percentage point, why? because uncle sam has been stamped on the forehead about as a riskier borrower. the banks will see that, and prevent customers from taking their money out of the bank and putting it in those suddenly higher yield treasury bonds. so now the banks are paying more interest to keep all those deposits in their checkings and savings account, and the banks pass that interest cost on to the borrower. let's say you need a car loan. well, your interest rate is going to jump by half a point, up to about 4.5%. your monthly payment will therefore go up we calculate by about $2 a month. doesn't sound bad, but that projection is based on the median car loan in the united states, which is $10,000.
3:40pm
lots of people borrow than that for their car and consequently pay more month. what about your home loan? the median debt on a home in this country is $165,000. remember, it's higher in the nation's capital and other bigger cities. if your interest rate spikes up by five points, then your monthly goes up by $50 a month, costing you $500 more per year. >> that would push down the number of buyers for particular types of houses, and put the real estate market into even more of a slump it is today. >> keep in mind, there are some interest rate hikes we didn't even talk about, like credit card rates. these are some of the real-life consequences of this extraordinary political drama that's been grinding on between the president, the white house, the treasury secretary, and both parties on capitol hill. that's why you can look at these people, regardless of party, and say, you are debt to me. bret?
3:41pm
>> bret: james, thank you very much. we will have more with the panel on this breaking development, as you see lawmakers leaving the house side after just voting 218-210 to pass the latest iteration, the third iteration, of speaker boehner's bill to raise the debt ceiling and to cut spending. now all the action heads over to the senate. we will head there, as you look live at the house floor, about that after the break. an accident doesn't have to slow you down. with better car replacement ailable only with liberty mutual auto insurance, if your car's totaled, we give you the money for a car one model year newer. to learn more, visit us today. responsibility. what's your policy?
3:42pm
[ engine revving ] [ male announcer ] 125 years ago... we invented the automobile. ♪ and 80,000 patents later, we're still reinventing it. ♪ it's no coindence that the oldest car company has the youngest and freshest line in the luxury class. mercedes-benz. see your authorized mercedes-benz dealer for exceptional offers on the c-class. ♪ for exceptional offers on the c-class. diabetes testing? it's all the same.
3:43pm
nothing changes. then try this. freestyle lite® blood glucose test strip. sure, but it's not gonna-- [beep] wow. yep, that's the patented freestyle zipwik™ design. did it just-- [both] target the blood? yeah, drew it right in. the test starts fast. you need just a third the blood of one touch.® that is different. so freestyle lite test strips make testing... easy? easy. great. call or click-- we'll send you strips and a meter, free. free is good. freestyle lite test strips. call or click today.
3:44pm
>> speaker boehner has been doing the hard work of governing, working day and night to put together a bill that can actually pass the house of representatives and end this crisis now. >> the last train is leaving the station. this is our last chance to avert a default. the vote on this compromise will determine whether we enter the frightening world of default. >> bret: the senate majority leader, the senate minority leader earlier in the day, and
3:45pm
now you are looking live at the senate floor. this is where this all heads next. what comes out of this body will then go back to the house of representatives, need to be pushed through there to get to the president's desk before the deadline on tuesday. let's reintroduce our panel. steve hayes, senior writer for the "weekly standard." courage tumuty with the "washington post," david drucker report for "roll call," and syndicated columnist, charles krauthammer. karen, what is going on in the senate, and what will happen? >> the first thing they'll do is take out a shovel and bury the boehner bill that just passed the house. then at some point over the weekend, i believe it's going to be in the wee hours on sunday, they are going to attempt harry reid's version of this debt ceiling lifting bill, and then we'll be right back where we were this morning, which is
3:46pm
another round of negotiations. >> bret: david, the key difference between boehner and reid is time. the debt ceiling has increased for a short period with boehner, then a trigger sets in, another vote has to happen in order to get more cuts for the debt ceiling to be increased again. reid carries the debt ceiling increase through the election. it also has cuts that republicans have attacked as not being real cuts. >> that's correct. >> with senator reid's bill, you get past the 2012 elections, a major demand of president obama. reid's has cuts based on wars winding down. republicans don't like this, because you don't know that you'll have another foreign policy excursion. >> bret: but paid at surge level payments. >> right, but the point with
3:47pm
republicans they want to shrink the size of government. so when you talk about an extra cost for a war, whether you like their opinion or not, this is why is this such a huge sticking point, where reid doesn't have -- reid he has 52, because senator manchin said he's a no on the reid bill. >> bret: a very conservative democrat. >> also a no on the boehner bill as it happens. because of that he'll have to find enough republicans to 60 votes. they're not going to be there until you get into a real negotiation, a compromise between boehner and reid. >> bret: charles, do you think reid acknowledges they don't have the 60, and they're in big-time behind closed doors negotiations to find something that gets through? >> yes, he may not acknowledge it in public, but in private, of course, he needs eight republicans to hit 60, because he's lost one. and that means the big winner today of this vote in the house is mitch mcconnell, because if
3:48pm
he's going to get the eight votes he might bic pick up a mountaibrownhere or -- mcconnell drive this. he will do it in consultation with boehner so that we will now have a negotiation over what could possibly pass. and i think the loser here is president, who's margin generalized. it's now in the congress, exactly where the boehner was to put it, and the president is sitting on the outside tweeting. >> bret: quickly, steve, before we take a break and have final thoughts. >> one substantive difference between the reid and boehner plans, and that is where the reid bill actually has real cuts, those cuts are in defense, and republicans do not like that, house republicans and nat republicans, do not like this. that will be a sticking point in the senate. >> bret: final thoughts from the panel on this day. speaker boehner's bill passed
3:49pm
218-210. the next step is happening now. [ jasmine ] i want to be a pediatrician so i want to major in biology. miss gopie is the best teacher i ever had. she's amang, i love her. [ de ] i'm teaching jasmine ap biology. i knew she had the talent... i always pushed her. [ jasmine ] her class you literally have to think, le it takes so long to do her homework. [ jade ] she's gained the confidence that she can achieve anything. [ jasmine ] i'm going to be aediatrician... and i'm going to make this dream come true. a 100 percent. ♪
3:50pm
3:51pm
3:52pm
>> yays are 218, the nays are 210. the bill is passed. without a objection a motion to reconsider is laid upon the table. [gavel pounded] >> bret: finally house republicans did pass speaker boehner's bill to increase the debt ceiling and cut spending. it goes over to the senate for a vote. we're back with our panel for final votes. steve? >> the significance of the boehner bill passing, that means house republicans, particularly john boehner himself, are still in the conversation. they're able to drive this conversation in a way they wouldn't have been able to if the bill had gone down. if it had gone down, it's
3:53pm
entirely possible that the reid bill passes in the senate, and the house republicans are marginalized at that point. the differences between reid and boehner in that critical area, house republicans, republicans generally, have a voice. >> bret: karen? >> we've talked about grand bargains, big changes. what this is once again sort of kicking the can. it makes you wonder if the political system is now so broken that it is actually incapable of solving problems. >> i don't think it's incapable of solving problems. i think people ought to try incrementalism. republicans should remember what got democrats in trouble, they took a bite at the apple in healthcare. republicans said slow down. for the next few days, if we're going to meet this deadline, it's all about politics,
3:54pm
deal-make, compromising, and horse trading. >> bret: charles? >> the end it's all about one debate, the debate that started with the obama inauguration with the fairly radical social democratic program he set in front of the nation. he tried to enact, obama care, stimulus, cap and trade. he said i want to change america. now we had resistance. the midterm election of 2010. we are engaged in a great debate. i don't decry the partisanship. it's good for a country every 30 years to have a debate. we'll have a discussion over our debt, structure of government, and the size and the reach of government. that's exactly what we ought to have. we out to be happy on this day. >> bret: so down the road, crisis averted by tuesday? >> yes. >> i'm still undecided, but at least they're in a position. >> it's unimaginable that it
3:55pm
won't be. >> bret: steve? >> i think you can see the contours of a plan, so yes i think. >> bret: a bigger plan than we're looking at now? a hybrid between reid and boehner. the house republicans give on the calendar. i think the senate democrats give a little bit on substance, and that's your compromise. >> a big plan only is possible after election day in 2012. 2010 now and then, it will be compromise, incrementalism, and debate, which is good. i'm a happy guy today. >> bret: we're all busy. final thoughts from me rights after the break as we look live at capitol hill where the action is still ongoing. it's all in the u.s. senate tonight.
3:56pm
diabetes testing? what else is new? you get the blood, hope it's enough, it's-- what's this? freestyle lite® blood glucose test strip. sure, i'll try it, but-- [beep] wow. yep, that's the patented freestyle zipwik™ design. it's like it-- [both] targets the blood. yeah, draws it right in. the test starts fast. you need just a third the blood of one touch.® okay. freestyle test strips. i'll take 'em. sure. call or click-- we'll send you strips and a meter, free. can't i just have these? freestyle lite test strips. call or click today.
3:57pm
the man you've become. and you learned something along the way. about the world. and yourself. ♪ this is the age of knowing what you're made of.
3:58pm
and knowing how to get things done. so, why would you let something like erectile dysfunction get in your way? isn't it time you talked to your doctor about viagra? 20 million men already have. wih every age comes responsibility. ask your doctor if your heart is heahy enough for sex. do not take viagra if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. side effects may include headache, flushing, upset smach, and abnormal vision. to avoid ong-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. you didn't get to this age by having things handed to you. this is the age of taking actn. viagra. talk to your docr. see if america's most prescribed e.d. treatment is right for you. >> bret: on nights like tonight we rely heavily on producers on chill chad pergram and trish
3:59pm
hill. they are a lifeline to all things. our eyes and ears up there on capitol hill. they have done fantastic job and in the past few days and they continue to do so. here's a progressive from chad up on the house side right before the vote. we have video right after the vote, of course, passing 218 to 2010. chad writes that it was a close vote for the g.o.p. representatives tim scott from south carolina, trey from south carolina. tom latham from iowa. boehner's best friend in the house, they were in case of emergency break glass votes. scott gowdy were sitting on the democratic side of the aisle looking up at the board as the votes were being counted. not voting until the republicans were sure they had enough votes. house majority whip kevin mccarthy stood right next to them throughout the entire vote. you see how close this was. all of them were no votes. latham was the final g.o.p. no vote casting his b